If average total cost is decreasing as more and more units are produced, then marginal cost must be
A) rising.
B) constant.
C) below average total cost.
D) negative.

Question

Quizplus · Accepted Answer

When average total cost is decreasing, it means the cost of producing an additional unit (marginal cost) is less than the average total cost up to that point, pulling the average down.

If Average Total Cost Is Decreasing as More and More